Wester China plays catchup

Business Asia, March 17, 2000

Four provinces and one autonomous region in western China are investing heavily in infrastructure facilities in a bid to accelerate the anticipated upsurge of the region.

The relatively backward infrastructure facilities in Sichuan, Shaanxi, Gansu and Guizhou provinces and the Tibet Autonomous Region have long hindered the economic development of these areas.

In response to the central government's decision to shift the focus of economic development from eastern areas to underdeveloped western China, the four provinces and the Tibet Autonomous Region have worked out detailed measures for improving local infrastructure facilities, and some achievements already have been realised.

Shaanxi Province, for example, built 1000km of highways last year, and now construction has begun on several other highways. The province also plans to invest 130 billion yuan (US$15 billion) over the next eight to 10 years to construct more highways.

Gansu Province is expected to invest 4.2 billion yuan in fixed assets this year, with funds for the communications sector alone standing at 5 billion yuan.

The province also will use 600 million yuan over the next six years to renovate and expand highways, railways and airports. By the end of last year, Gansu's highway had stretched to some 36,212km.

A large ecological environment project costing 48.9 billion yuan will also be initiated soon, and between 2000 and 2010 the province will return 5.3 million hectares of farmland to forest.

In 1999, landlocked Guizhou Province in southwest China spent a record 12.3 billion yuan to build railways and highways in order to stimulate economic development. Thus far, the province's highways total 33,000km.

In the next two to three years, Guizhou is expected to become a communications hub linking southwest China, northwest China and south China.

The Tibet Autonomous Region's investment in fixed assets will reach 6 billion yuan this year, up 20 per cent over 1999.

This is part of Tibet's effort to step up construction of communications, energy and other facilities to accelerate economic growth.

-- Asia Pulse